Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Anti-Corruption

Governance Achievements

• Established an Anti-Bribery and Corruption Policy approved by the Board of Directors.
• In the process of joining Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC).

Climate Goals & Targets

Environmental Challenges

• Risk of corruption and bribery in business operations.

Mitigation Strategies

• Implementation of an Anti-Bribery and Corruption Policy with detailed guidelines on political contributions, charitable donations, sponsorships, gifts, and hospitality.
• Establishment of roles and responsibilities for the Board of Directors, Audit Committee, CEO, Management, Internal Auditors, and Employees.
• Regular Control Self Assessment (CSA) on corruption and bribery risks.
• Whistleblower procedures for reporting violations.
• Training and communication of the policy to all employees and relevant stakeholders.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Corporate Governance

Social Achievements

• Donated computers to the Foundation for Support of Disabled Persons and The Mirror Foundation.
• Organized environmental activities such as sorting rubbish, worthwhile use of paper, using electronic mail (e-mail) to reduce the use of paper and energy saving campaigns.

Governance Achievements

• Improved corporate governance rating from "Very Good" to "Excellent" in the Corporate Governance Report of Thai Listed Companies 2016.
• Received a score of 100 points earning the “Excellent and worthy as an example” level from the Thai Investor Association in their assessment of the 2016 Annual General Meeting.

Climate Goals & Targets

Environmental Challenges

• Challenging year in the Lifestyle & Entertainment sectors, especially in Quarter 4 due to the death of King Bhumibol Adulyadej.
• Economic slowdown impacting the advertising industry.
• High competition in the concert organizer, form and concept of concert, recruitment of artists and procurement and reservation of venue.
• High competition in the English language school business due to low barrier to entry.
• High competition in the restaurant industry due to changing consumer preferences and rapid city expansion.

Mitigation Strategies

• Narrowed interests in the Lifestyle sector to Food and Education.
• Expanded business to overseas markets.
• Improved quality and made necessary adjustments to increase competitiveness.
• Emphasized quality by providing entertaining shows with quality, value-for-money, and impressive for all audience.
• Employed experienced personnel with suitable qualifications, located centers in good locations, built a strong and quality sales team, organized campaigns suitable to target customers, and adapted to the ever-changing environment.
• Maintained reputation as a leading restaurant with quality steak and reasonable prices, provided variety of menu selection, fast service, and adapted to changing needs of consumers.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Corporate Social Responsibility

Social Achievements

• Organized various charity events and activities (e.g., charity run, volunteer project at school, providing stage play for children at foster homes, blood donation).

Governance Achievements

• Improved corporate governance score from 90% to 91%, maintaining an “Excellent” rating from the Thai Institute of Directors (IOD) and an “Excellent 100% rating from the Thai Investors Association.

Climate Goals & Targets

Environmental Challenges

• Challenging business year due to a drop in consumer disposable income, limitations on marketing and entertainment events, and a 39% drop in sales for Wall Street English.
• 8% sales drop for Jeffer Restaurant in 2017.
• Intense competition in the market for integrated marketing communications, restaurant, and English language school businesses.

Mitigation Strategies

• Narrowed interests in the Lifestyle sector to Food and Education.
• Acquisition of Index Creative Village Public Co. Ltd.
• Investment in renovating Wall Street English centers and building two new centers.
• Adjusting Jeffer Restaurant to offer more ‘value’ meals.
• Opening 4 new Jeffer restaurants and closing 7 non-performing stores.
• Focusing on overseas businesses for Index Creative Village.
• Investing in employee development and training (average 14 hours per year).

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Corporate Social Responsibility

Social Achievements

• Organized volunteer camps to teach English in rural areas.
• Donated to Duang Prateep Foundation and other charities.
• Provided scholarships to Chiangmai University students.

Governance Achievements

• Maintained an “Excellent” rating in the Corporate Governance Report of Thai Listed Companies in 2018 from the Thai Institute of Directors (IOD).

Climate Goals & Targets

Environmental Challenges

• Intense competition in the market for integrated marketing communications, restaurant, and English language school businesses.
• Fluctuation in raw material prices for the restaurant business.
• Economic and political instability, natural disasters.
• Shortage of personnel in TV production.

Mitigation Strategies

• Consolidation of stores to strengthen the overall portfolio (restaurants).
• Improving margins and driving growth through franchising opportunities.
• Investing in renovating centers and building new centers (English language school).
• Renegotiating franchise agreements.
• Diversification of sourcing strategies for raw materials.
• Risk management measures to lower the negative impact on the business and manage force majeure events, including insurance.
• Changing hiring methods from freelance to long-term contracts (TV production).

Supply Chain Management

Responsible Procurement

• Ordering raw materials from 2-3 suppliers for each type of raw material (restaurants).

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Corporate Social Responsibility

Social Achievements

• Organized several activities for the benefit of society and the environment, including donating to charities and organizing environmental campaigns within the company.

Governance Achievements

• Maintained an “Excellent” rating of 91% in the Corporate Governance Report of Thai Listed Companies in 2019 from the Thai Institute of Directors (IOD), and an “Excellent” rating of 99% from the Thai Investors Association in their assessment of the 2019 Annual General Meeting.

Climate Goals & Targets

Environmental Challenges

• Declining restaurant sales due to economic conditions and increased competition.
• High competition in the English language school business.
• Risks related to procurement of the right locations for conducting businesses.
• Risks from shortage of personnel.
• Risks from economic and political instability, natural disasters, and force majeure.

Mitigation Strategies

• Consolidating Jeffer stores to strengthen the overall portfolio and focusing on franchising opportunities.
• Investing in refreshing centers and adding an additional center in Central Plaza Changwattana for Wall Street English.
• Developing alternative sourcing strategies and taking out insurance over assets.
• Promoting employee passion and bond with the organization, providing continuous training and skill development, and ensuring appropriate employee compensation and benefits.
• Implementing risk management measures to lower the negative impact on the business and manage force majeure events.

Supply Chain Management

Responsible Procurement

• Jeffer orders raw materials from 2-3 suppliers for each type of raw material to provide diversification in terms of price and raw materials.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Corporate Governance Report of Thai Listed Companies

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Corporate Social Responsibility

Social Achievements

• Wall Street English managed to reduce its cost and expenses and, as a result, EBITDA turned positive at 13%
• Wave Education Group Co., Ltd. opened one branch by sub-franchisee in Khon Kaen Province in the Northeastern region of Thailand.
• Jeffer opened 1 franchisee branch in Chomphon Province.

Governance Achievements

• Maintained an “Excellent” rating of 91% in the Corporate Governance Report of Thai Listed Companies in 2020 from the Thai Institute of Directors (IOD), supported by the Stock Exchange of Thailand.
• Maintained an “Excellent and deserve as an example” rating of 100% from the Thai Investors Association in their assessment of our Annual General Meeting in 2020.

Climate Goals & Targets

Environmental Challenges

• The COVID-19 pandemic and countermeasures issued by the Thai government have resulted in temporary closures and limited business operations in the first half and the impact of COVID-19 resurgence in December 2020 which impacted the group’s top line significantly.
• Jeffer Restaurant sales declined significantly as a result of the COVID-19 pandemic impact.
• High competition in the market, especially large-scale organizations who had made investment to win customers, adversely affecting medium and small operators.
• Changes in consumer behavior demanded more careful spending. Dining behavior had also changed. People were dining out less and ordering food delivery or cooking their meals at home.

Mitigation Strategies

• Wall Street English managed to reduce its cost and expenses and, as a result, EBITDA turned positive at 13%.
• Jeffer continues to consolidate its stores to strengthen the overall total portfolio. Nonperforming stores were closed, resulting in the net drop in stores number from 61 to 47 by end 2020.
• Jeffer continues to offer organic and regional growth opportunities to expand Jeffer's unique value position in the Western Dine-In segment targeting teens, young adults and families. This year we have added many more Asian dishes such as Korean and Thai available through all channels: take away, delivery and dine-in to cater to more local consumers during their economic situation.
• Developed a comprehensive online learning technology system to support and meet students’ needs during covid-19 pandemics.
• Added a new channel of distribution which is telesales to customers who are not convenient to travel to the centers and customers who are in up-country (where there is no center located) can register the course.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment, Social and Governance (ESG)
• Carbon Credit
• Renewable Energy Credit (REC)

Climate Goals & Targets

Environmental Challenges

• Need for additional capital for business expansion and sustainable initiatives.
• Addressing the 'C sign' designation (indicating less than 50% of paid-up capital held by shareholders).

Mitigation Strategies

• Capital increase through issuance of new common shares.
• Reduction of registered capital by eliminating unissued common shares.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Investment in Carbon Credit and Renewable Energy Credit (REC) business.

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Total current liabilities exceeding total current assets by Baht 173 million.
• Deficits of Baht 277 million.
• Continuous operating losses over the years.
• Equity equal to 28 percent of the paid-up share capital (less than 50%, resulting in a 'C' (Caution) sign from the Stock Exchange of Thailand).

Mitigation Strategies

• Cash flow projection for language institution segment, extending franchise revenue stream, launching online courses, marketing activities, and promotions to increase student enrollment.
• Issuance of share capital approved by shareholders.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Thai Accounting Standard 34, “Interim Financial Reporting”

Third-party Assurance: PricewaterhouseCoopers ABAS Ltd.

Environmental Metrics

ESG Focus Areas

• Carbon Credit
• Renewable Energy

Climate Goals & Targets

Environmental Challenges

• Accumulated loss amounting to Baht 311 million and net loss for the year amounting to Baht 20 million.
• Negative net cash from operating activities amounting to Baht 688 million.
• Doubt about the entity’s ability to continue as a going concern.

Mitigation Strategies

• Cash flow projection for language institution segment by extending franchise revenue stream, launching marketing activities and promotions.
• Cash flow projection for carbon credit business based on sales plan.
• Extended payment term for Renewable Energy certificate purchases to March 2025.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Thai Financial Reporting Standards (TFRS)

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Accumulated loss amounting to Baht 285.56 million and cash flow used in operations of Baht 254.99 million, raising doubt about the Group’s ability to continue as a going concern.

Mitigation Strategies

• Management prepared cash flow projections for language institution and carbon credit business segments, aiming to achieve estimations through revenue stream extension, marketing activities, and promotions to increase student enrollment and carbon credit sales.

Supply Chain Management

Climate-Related Risks & Opportunities